The Amazon-Future Group dispute originated from Amazon’s 2019 investment of ₹1,431 crore to acquire a 49% stake in Future Coupons Private Limited (FCPL), a subsidiary of Future Group. This investment was designed to give Amazon indirect access to Future Retail Limited (FRL), India’s second-largest retail chain operating Big Bazaar stores, since foreign companies face restrictions on direct investment in multi-brand retail.
The shareholder agreements included restrictive covenants that prohibited Future Group from selling assets to a list of 30 “restricted persons,” including Reliance Industries. Amazon’s strategy was to eventually gain control of Future Group’s extensive retail network of approximately 1,800 stores across India.
The dispute arose in August 2020 when Future Group, facing severe financial distress due to COVID-19 lockdowns and mounting debts of ₹22,000 crore, announced a ₹24,713 crore deal to sell its retail, wholesale, logistics and warehousing businesses to Reliance Industries. Amazon immediately objected, claiming this violated their 2019 agreements.
Amazon initiated arbitration proceedings at the SIAC in October 2020, securing an emergency arbitration award that halted the Reliance-Future deal. The case became a multi-jurisdictional battle involving SIAC, Indian courts and regulatory bodies like the Competition Commission of India, which later suspended Amazon’s original 2019 deal approval for non-disclosure of material information.
